ETFs that track stock markets should publish daily the
identities of the securities, they buy and sell, the
International Organization of Securities Commissions said in a
statement on guidelines published today. The Madrid-based group
of global markets regulators said authorities should also ensure
ETFs that trade derivatives have enough collateral to manage
risks with their counterparties.

The global ETF industry had $1.9 trillion of assets under
management at the start of the year, according to the Iosco
report. While financial watchdogs have reined in excessive risk
taking by banks in the wake of the 2008 crisis, they are
concerned that lenders and other financial firms can use ETFs,
repurchase agreements and other off-balance sheet activities,
known as shadow-banking, to evade the rules.

“Dynamic growth” in the market for these funds has
“attracted the attention of regulators, concerned about the
potential impact of ETFs on investors and on the broader
marketplace,” Iosco said.